Green Seal Holding Co (綠悅) has filed an application with the Taiwan Stock Exchange (TWSE) for a primary listing on the main board, the exchange said on Saturday.
A prospectus on the TWSE Web site shows that Green Seal is planning to issue 15 million new shares for the listing and expects to raise about NT$1.68 billion (US$56 million) from the sale of shares tentatively priced at NT$112.
The company, incorporated in the Cayman Islands and capitalized at NT$1.2 billion, said it will use the proceeds from the fund raising as working capital for future expansion and to pay down its debt.
The fund raising plan is scheduled to be completed in the first quarter of next year, Green Seal said, adding that after reducing its debt, its interest payments will drop by NT$107.7 million a year.
Green Seal said its debt-to-asset ratio is expected to fall to 18.68 percent next year from an estimated 30.65 percent this year.
The company said the major underwriter of its share sale is KGI Securities (凱基證券).
Green Seal produces biaxial oriented polyamide film (BOPA film), which is largely used as packaging material to wrap frozen food, vegetables and other agricultural and fish products.
BOPA film is also used as packaging materials for medical, chemical and electronics products, the company said.
Currently, Green Seal operates a broad production base in Xiamen in Fujian Province and is one of the largest BOPA film producers in China. All of its products are sold in the Chinese market.
Last year, Green Seal posted NT$953.59 million in net profit, or NT$9.73 per share, compared with NT$551.84 million in net profit or NT$5.63 in earnings per share in 2011.
In the first six months of this year, Green Seal’s net profit stood at NT$611.61 million or NT$4.90 per share.